Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Connect with us

Hi, what are you looking for?

slide 3 of 2
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Finance

Finance

Dow-DuPont Merger Delayed Due to FMC Deal

Dow Chemical and DuPont have delayed their merger. The cause would be due to the fact that both are making at attempt at an asset swap, totaling $1.6 billion, with FMC Corp. a known pesticide maker.

The merger between Dow Chemical and DuPont runs at an estimated $78.7 billion and is expected to be finalized sometime in August. Yet it would seem that FMC grew the most in the eight years that it came to the agreement to purchase DuPont’s crop-protection assets. The European Union wanted those assets to be sold off before things are finalized with Dow Chemical.

DuPont has plans to gain FMC’s health and nutrition business. This deal with FMC, according to DuPont Chief Executive Ed Breen, will gratify “the bulk” of what’s needed for the company to gain the permission of governments around the globe. The largest speed bump in the two companies’ merger is that the European Commission, as well as their global counterparts, are to review all the implications of any antitrust issues that go along with the FMC transactions.

It’s stated that the closing extension is the most recent for the agreement that was drafted back in 2015 and only closed just last year. Both companies gained the approval of the European Commission for their merger back in March. The way they did this was agreeing to sell all pesticide and polymer assets. Yet while this brought them a bit further, they still need antitrust clearance from China, Brazil, and the United States.

Breen believes that the requirements are just “little things” that each country needs in order to finalize the regulatory approvals.

Besides research and development programs, DuPont plans to sell herbicide and insecticide to FMC. Among the assets that the company is selling to FMC is Rynaxypyr, which has earned itself the reputation of being a top seller for DuPont. Just last year Rynaxypyr earned the company an estimated $450 million. That’s just before interest, taxes, depreciation and amortization was added on. Afterward the total climbed to around $1.4 billion.

A company based in Delaware, called Wilmington, has plans to acquire FMC food businesses as well as ingredients used in pharmaceuticals that usually generate around $228 million in earnings.

It was also stated to a source that FMC has plans to pay DuPont over $1.2 billion as well as give DuPont $425 million in working capital. That money is supposed to reflect the difference in asset values.

Even after all the payments, FMC stills poses to be a good deal for DuPont. After its dealing with DuPont, FMC will hold over 90 percent of pesticide sales. That will make the Philadelphia company the fifth largest producer of crop protection chemicals.

Aside from everything else, Dow and DuPont say they still have plans to combine forces. Once this is done, however, the two say the will then proceed to divide the finally merged company into three. This will take place just over 18 months of closing the deal. The first spinoff company to emerge from this will be a plastics company that will carry on the name, Dow.

The other two companies coming out of the merger will be agriculture and specialty companies. All three will retain the BBB rating by Standard & Poor’s, which is the current rating that Dow now holds.

Although FMC is still thought of as a good deal by some analysts, it is expected to reduce the cost savings that will be anticipated by the merger of DuPont and Dow. Yet once the deal is closed and the two companies have merged, it’s predicted that their combination will bring a targeted $3 billion of synergies.


Comment Template

You May Also Like

Business

On January 27, 2025, a tech-driven selloff erased $108 billion from the fortunes of the world’s wealthiest, sparked by struggles at AI giant DeepSeek....

Business

Amazon has appointed Whole Foods CEO Jason Buechel to lead its global grocery operations, signaling a bold push to redefine the grocery industry. With...

Business

Amazon is transforming Prime Video to achieve profitability by 2025, focusing on live sports, integrating third-party channels, and diversifying revenue streams. Led by CEO...

Business

Alphabet Inc. reached a major milestone as its shares closed above $200 for the first time, driven by a strong focus on AI innovation...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok